# Australia Increases Rail Freight to Save Diesel

**Category:** Industry News  |  **Source:** Australian Government – TRACK Grant Opportunity Guidelines (business.gov.au)  |  **Published:** 2026-09-15  |  **Updated:** 2026-09-16

**Tags:** Australien, TRACK-Programm, Schienengüterverkehr, Intermodalität, Dieselverbrauch, Verkehrsverlagerung, Bahntransport, TEU, Lieferkette, Energieversorgung, Logistik News, Transport News, Fracht News, Speditions News, Supply Chain News, Zoll News, Frachtportal News, Seefracht, Schienentransport, Digitalisierung, Nachhaltigkeit

> Australia is paying rail operators for additional freight on the rails. This time, the main objective is not only climate protection, but also reducing dependence on diesel.

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Australia wants to shift more goods from road to rail in the short term. To this end, the first round of the new TRACK pilot program opened on September 11, 2026. TRACK stands for "Transport Resilience and Capacity Kickstart".

The first round has up to 26 million Australian dollars available. The entire program comprises 52 million dollars. Future funding rounds are intended to include coastal shipping and ports in addition to rail.

The interesting aspect is the rationale. It is not only about reducing emissions or fewer trucks on roads. Australia primarily wants to save diesel and better secure its supply chains in the event of international crises. The government explicitly references the conflict in the Middle East and potential risks to fuel supply.

Payment is not a flat rate. Rail operators must demonstrate that they are transporting additional loaded containers that would otherwise have been transported on roads. Funding is provided per TEU. One TEU corresponds to a 20-foot container. A 40-foot container typically counts as two TEU.

Only volumes above an agreed baseline value receive funding. Shipments also cannot be simply poached from another rail operator. This is intended to prevent existing rail traffic from being marketed as new traffic shifting.

Compared to Europe, the model is quite direct. European funding models often support infrastructure, terminals, new connections, or offset avoided environmental and accident costs. TRACK instead focuses specifically on quickly demonstrable diesel savings and additional containers per route. However, per-unit transport funding is not entirely new in Europe either.

Licensed Australian freight rail operators can submit applications until October 1, 2026, at 5:00 PM Australian Eastern Standard Time. Up to ten million Australian dollars are possible per application. Projects must be completed by June 30, 2027.

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For freight forwarders and shippers, the program can make rail offers on certain Australian routes more price-competitive. However, whether the subsidy reaches the customer depends on the rail operator's offer and the subsequent subsidy agreement.

When shifting freight, dispatchers must particularly examine the pre- and on-carriage legs, terminal dwell times, available rail capacity, and fixed departure days. A cheaper main haul is of little help if containers remain in the terminal for several days due to a missed train.

Shippers should also clarify whether their volumes are actually new to rail. Operators must be able to prove that the cargo would have been transported by truck without the subsidy. Diesel consumption and transport volumes are also monitored on a route-by-route basis.

In short: Australia makes fuel supply a concrete driver for increased rail freight traffic – but payment is only made for verifiable additional volumes.

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The first TRACK funding round opened on 11 September 2026.

Up to 26 million Australian dollars are available for round one.

The total TRACK programme comprises 52 million Australian dollars.

Eligible applicants are licensed Australian rail freight operators.

A maximum of ten million Australian dollars can be requested per application.

Funding is provided for additional loaded TEU above an agreed baseline value.

The funded volumes must be newly transferred to rail and must not be diverted from other rail operators.

Applicants must demonstrate that the goods would otherwise have been transported by road.

The application deadline is 1 October 2026 at 5:00 PM AEST.

Funded projects must be completed by 30 June 2027 at the latest.

## Related Entities

### Countries

- [Australia](https://www.freight-academy.com/en/information/land/au)

### Glossary

- [Container](https://www.freight-academy.com/en/glossary/container)
- [Goods](https://www.freight-academy.com/en/glossary/goods-2)
- [Intermodal Transportation](https://www.freight-academy.com/en/glossary/intermodal-transportation)
- [Supply chain](https://www.freight-academy.com/en/glossary/supply-chain-2)
- [Supply Chain](https://www.freight-academy.com/en/glossary/supply-chain)
- [Terminal](https://www.freight-academy.com/en/glossary/terminal)
- [rail freight transport](https://www.freight-academy.com/en/glossary/rail-freight-transport-4)
- [Transport unit](https://www.freight-academy.com/en/glossary/transport-unit)
- [modal shift](https://www.freight-academy.com/en/glossary/modal-shift)
- [TEU (Twenty-foot Equivalent Unit)](https://www.freight-academy.com/en/glossary/teu-twenty-foot-equivalent-unit)
- [Pre-carriage](https://www.freight-academy.com/en/glossary/pre-carriage)
- [On-carriage](https://www.freight-academy.com/en/glossary/on-carriage)
- [Coastal shipping](https://www.freight-academy.com/en/glossary/coastal-shipping)
- [Diesel](https://www.freight-academy.com/en/glossary/diesel)

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